Investigation into Medicaid processing contract continues

The term of the special state grand jury that indicted former Louisiana health chief Bruce Greenstein on perjury charges in September has expired, but the probe into the award of a lucrative Medicaid claims processing contract to his ex-employer in 2011 is ongoing, a prosecutor said Tuesday.

Assistant State Attorney General David Caldwell said the investigation can continue into 2015 without running into legal time limitations on bringing further action.

“It’s sooner rather than later,” he said of the deadline.

Caldwell’s comments came outside state District Judge Lou Daniel’s courtroom shortly after he turned over scores of documents to Greenstein’s attorneys during a brief hearing in the criminal case.

“We just have to take time and go through all these emails,” John McLindon, one of Greenstein’s lawyers, said of new documents now in the hands of the defense.

“We still don’t think a crime has been committed, and we haven’t seen anything to change our mind,” added Brent Stockstill, who also represents Greenstein.

Caldwell said he could empanel a new grand jury or use one already in session on other matters as the case continues. Prosecutors also have the option of filing charges on their own, he said.

“We expect more investigation,” Caldwell said when asked outside the courtroom if more charges could be expected in the case.

Greenstein, who lives in Seattle, did not attend Tuesday’s court proceeding. McLindon said Greenstein is “holding up fine.”

The next hearing is set for March 19.

Greenstein, 45, pleaded not guilty last month to nine perjury counts that accuse him of lying during sworn testimony before a state Senate confirmation hearing in June 2011 and before the grand jury last June. He resigned in April 2013.

The alleged perjury related to testimony he gave about contacts with his former employer, Client Network Services Inc. Greenstein was a CNSI vice president from 2005 to 2006.

The nearly $200 million Medicaid claims contract awarded to Maryland-based CNSI was abruptly canceled by the state in 2013. The state alleges then state health secretary Greenstein had improper contact with his former employer throughout the bid and award process. Greenstein acknowledged minor contact.

Records indicated steady communication between Greenstein and CNSI executive Creighton Carroll, but McLindon has said the two men are friends and a vast majority of the communications were personal.

CNSI is suing the state, claiming wrongful termination of its contract.